Bitcoin Hits $71,926 After 13.80% Weekly Surge

Bitcoin Hits $71,926 After 13.80% Weekly Surge

Key Points:

  • Bitcoin increased by 13.80% over the past week, reaching $71,926, close to its all-time high.
  • A 14% futures premium and a -8% options market skew reflect moderate bullish sentiment and a balanced outlook.

Bitcoin (BTC) has experienced a remarkable surge over the past week, with a notable price increase of 13.80%. As of May 21, the current price of Bitcoin stands at $71,926, which is merely 2.5% away from its all-time high. Impressive performance is due to optimism about an Ethereum Spot ETF approval and a broader trend favouring inflation-hedge assets.

Ethereum Spot ETF Approval Likelihood Triples to 75%

The Ethereum Spot ETF has seen its approval odds significantly improve, with senior Bloomberg ETF analysts reporting an increase from 25% to 75% as of May 20. This change follows a pivotal decision by the US Senate on May 16, which overruled the SEC’s Bulletin 121. The ruling prompted a strategic reassessment at the White House, signalling a shift in the regulatory stance on digital assets. Observers see the potential approval of the Ethereum Spot ETF as a significant milestone that could further legitimise cryptocurrency investments and attract a new wave of institutional investors.

SEC Calls for Ethereum ETF Updates, 5 Filers Respond

Gary Gensler, SEC Chair, actively shapes the evolving regulatory landscape for cryptocurrencies. On May 20, the SEC requested updates to spot Ethereum ETF filings, a move that has already seen at least five ETF issuers amending their filings. These regulatory developments reflect a nuanced, favourable approach to cryptocurrency regulation, potentially boosting investor confidence and market stability.

Bitcoin Derivatives Market: Futures Premium at 14%

The sentiment in the Bitcoin derivatives market is moderately bullish. The futures premium is now 14%, its highest in five weeks. This rise suggests strong interest and confidence in Bitcoin’s near-term performance. Additionally, the options market sentiment is characterised by a skew of -8%, which suggests a healthy sentiment. This skew, while indicative of optimism, does not reflect excessive exuberance, thus maintaining a balanced outlook on Bitcoin’s prospects.

Bitcoin Surge Driven by ETF Hopes and Inflation Hedges

The recent surge in Bitcoin’s price can be largely attributed to two key factors. Firstly, the growing optimism surrounding the potential approval of the Ethereum Spot ETF has sparked a positive sentiment across the cryptocurrency market. Secondly, with inflation concerns persisting, investors increasingly seek assets that can serve as effective hedges. Many perceive Bitcoin, called “digital gold,” as a robust store of value, driving its appeal during economic uncertainty.